DICK'S Sporting Goods (DKS) 8-K Dick’s Sporting Goods Reports Second Quarter Results; Earnings Per Share and Same Store Sales Exceed Expectations

Exhibit 99.1

PRESS RELEASE

Dick’s Sporting Goods Reports Second Quarter Results; Earnings Per Share and Same Store Sales Exceed Expectations

• Company generated non-GAAP earnings per diluted share of $0.36, above previous estimate of $0.28 to 0.31. GAAP earnings per diluted share were $0.33.

• Consolidated same store sales declined 4.1%, better than previous estimate of a 9 to 6% decline.

• Inventory per square foot declined 5.5% at the end of the second quarter of 2009 compared to the end of the second quarter of 2008.

PITTSBURGH, Pa., August 20, 2009 — Dick’s Sporting Goods, Inc. (NYSE: DKS) today reported sales and earnings results for the second quarter ended August 1, 2009.

Second Quarter Results

The Company reported consolidated non-GAAP net income for the second quarter ended August 1, 2009 of $42.4 million, or $0.36 per diluted share. The second quarter earnings per diluted share exceeded estimated earnings expectations provided on May 19, 2009 of $0.28 - 0.31 per diluted share. For the second quarter ended August 2, 2008, the Company reported consolidated non-GAAP net income of $44.3 million, or $0.38 per diluted share. Non-GAAP earnings exclude merger and integration costs.

On a GAAP basis, the Company reported consolidated net income for the second quarter ended August 1, 2009 of $38.9 million, or $0.33 per diluted share, compared to $39.9 million, or $0.34 per diluted share for the second quarter of 2008. The GAAP to non-GAAP reconciliation is included in a table later in the release under the heading “Non-GAAP Net Income and Earnings Per Share Reconciliation.”

Net sales for the second quarter of 2009 increased by 3.7% to $1,126.8 million due primarily to the opening of new stores and the addition of e-commerce sales, partially offset by a 4.1% decrease in comparable store sales. The 4.1% consolidated same store sales decline consisted of a 3.2% decrease in Dick’s Sporting Goods stores and an 11.1% decline in the Golf Galaxy stores.

“In the second quarter, we generated higher than anticipated sales, continued to effectively manage inventory, and leveraged operating expenses. As a result, we generated higher earnings from our Dick’s Sporting Goods stores this year compared to the same quarter last year, in spite of the challenging economic environment.” said Edward W. Stack, Chairman and CEO. “In addition, with higher sales and better than anticipated operating leverage, Golf Galaxy performed better than originally expected.”

New Stores

In the second quarter, the Company opened four Dick’s Sporting Goods stores and converted the remaining Chick’s Sporting Goods stores to Dick’s Sporting Goods stores. The new stores are listed in a table later in the release under the heading “Store Count and Square Footage.”

In the first two quarters of 2009, the Company has opened 13 new Dick’s Sporting Goods stores, opened one new Golf Galaxy store, converted the Golf Shop to a Golf Galaxy store, closed two Chick’s Sporting Goods stores and converted the remaining Chick’s Sporting Goods stores to Dick’s Sporting Goods stores.

As of August 1, 2009, the Company operated 409 Dick’s Sporting Goods stores in 40 states, with approximately 22.7 million square feet and 91 Golf Galaxy stores in 31 states, with approximately 1.5 million square feet.

Balance Sheet

Long term debt declined by $159.0 million from the end of the second quarter of 2008 to the end of the second quarter of 2009 due to the repayment of $172.5 million for the Company’s senior convertible notes in the first quarter of this year. The inventory per square foot was 5.5% less at the end of the second quarter 2009 as compared to the end of the second quarter 2008.

Year-to-Date Results

The Company reported consolidated non-GAAP net income for the 26 weeks ended August 1, 2009 of $55.2 million, or $0.47 per diluted share. For the 26 weeks ended August 2, 2008, the Company reported consolidated non-GAAP net income of $63.9 million, or $0.55 per diluted share. Non-GAAP earnings exclude merger and integration costs.

On a GAAP basis, the Company reported consolidated net income for the 26 weeks ended August 1, 2009 of $49.1 million, or $0.42 per diluted share, compared to $59.5 million, or $0.51 per diluted share for the same period last year. The GAAP to non-GAAP reconciliation is included in a table later in the release under the heading “Non-GAAP Net Income and Earnings Per Share Reconciliation.”

Net sales increased 4.4% to $2,086.4 million primarily due to the opening of new stores and the addition of e-commerce sales, partially offset by a comparable store sales decrease of 5.0%.

Current 2009 Outlook

The Company’s current outlook for 2009 is based on current expectations and includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act as described later in this release. Although the Company believes that comments reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.

The Company believes that the remainder of the year will continue to be challenging. However, based on the second quarter results and the Company’s expectations for the second half of the year, it is raising its annual earnings estimates and increasing the expected same store sales for 2009.

• Full Year 2009

•	Based on an estimated 117 million diluted shares outstanding, the Company currently anticipates reporting non-GAAP consolidated earnings per diluted share of approximately $1.02 - 1.07, excluding merger and integration costs. For the full year 2008, the Company reported consolidated earnings per diluted share of $1.15, excluding a non-cash impairment charge and merger and integration costs.
	On a GAAP basis, the Company is anticipating reporting consolidated earnings per diluted share of approximately $0.97 - 1.02 in 2009 compared to a net loss of $0.36 per diluted share in 2008.
•	Comparable store sales are expected to decrease approximately 5 to 4% compared to a 4.8% decrease in 2008. The comparable store sales calculation for the full year 2009 includes Dick’s Sporting Goods stores and Golf Galaxy stores. The comparable store sales calculation for the full year 2008 includes Dick’s Sporting Goods stores only.
•	The Company currently expects to open approximately 24 new Dick’s Sporting Goods stores in 2009. The increase in the number of new stores compared to previous expectations is due to the Company’s plans to accelerate its expansion in the Pacific Northwest.

• Third Quarter 2009

• Based on an estimated 117 million diluted shares outstanding, the Company anticipates reporting consolidated earnings per diluted share of approximately $0.04 - 0.07 in the third quarter of 2009. In the third quarter of 2008, the Company reported non-GAAP earnings per diluted share of $0.07, excluding merger and integration costs, or $0.05 on a GAAP basis.

• Comparable store sales are expected to decrease approximately 6 to 4% compared to a 2.8% decrease in the third quarter last year. The comparable store sales calculation for the third quarter in 2008 and 2009 includes Dick’s Sporting Goods stores and Golf Galaxy stores. It excludes Chick’s Sporting Goods stores converted to Dick’s Sporting Goods stores.

• The Company expects to open approximately 11 new Dick’s Sporting Goods stores in the third quarter. The accelerated expansion in the Pacific Northwest is expected to have a negative impact on earnings per diluted share of approximately $0.01 in the third quarter, which has been considered in the earnings expectations.

• Cash Flow

• In 2009, the Company anticipates producing positive operating cash flow, net of capital expenditures, in excess of that generated in 2008. This is expected to be accomplished through continued effective inventory management and the anticipated reduction of net capital expenditures to $70 million in 2009 as compared to $115 million in 2008.

New Accounting Pronouncement

In May 2008, the FASB issued FSP APB 14-1, which impacts the accounting treatment for convertible debt instruments that allow for either mandatory or optional cash settlements. FSP APB 14-1 impacted the accounting associated with the Company’s senior convertible notes. This FSP requires the Company to recognize additional non-cash interest expense based on the market rate for similar debt instruments without the conversion feature. FSP APB 14-1 was effective for fiscal periods beginning in 2009 and required retrospective application. The Company adopted this accounting standard in the first quarter of 2009, and accordingly, the prior periods’ financial statements included herein have been adjusted. Adoption of this standard reduced previously reported earnings per diluted share for the second quarter and full year fiscal 2008 by $0.01 and $0.04, respectively.

Conference Call Info

The Company will be hosting a conference call today at 10:00 a.m. eastern time to discuss the second quarter results. Investors will have the opportunity to listen to the earnings conference call over the internet through the Company’s web site located at http://www.dickssportinggoods.com/investors. To listen to the live call, please go to the web site at least fifteen minutes early to register, download and install any necessary audio software.

For those who cannot listen to the live broadcast, the web cast will be archived on the Company’s web site for 30 days. In addition, a dial-in replay will be available shortly after the call. To listen to the replay, investors should dial 888-286-8010 (domestic callers) or 617-801-6888 (international callers) and enter confirmation code 34430126. The dial-in replay will be available for 30 days following the live call.

Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “may,” “will,” “expect,” “anticipate,” “believe,” “guidance,” “estimate,” “intend,” “predict,” and “continue” or similar words. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks and uncertainties include, without limitation, the current economic and financial downturn and its effect on consumer spending, changes in macro economic factors and market conditions, including the housing market and fuel costs, that impact the level of consumer spending for the types of merchandise sold by the Company, potential volatility in our stock price and the tightening of availability and higher costs associated with current and new sources of credit resulting from uncertainty in financial markets, changes in consumer demand, the retailing environment and customer preferences and spending habits, competitive pressures, pricing and promotional activities of competitors, changes in law and regulation including consumer protection and labor, currency exchange rate fluctuations, weather conditions, litigation, risks and costs associated with combining businesses and/or assimilating acquired companies and our ability to manage our operations and growth. Known and unknown risks and uncertainties are more fully described in the Company’s Annual Report on Form 10-K for the year ended January 31, 2009 as filed with the Securities and Exchange Commission on March 20, 2009, and other reports filed with the Securities and Exchange Commission. The Company disclaims any obligation and does not intend to update any forward-looking statements except as may be required by the securities laws.

About Dick’s Sporting Goods, Inc.

Dick’s Sporting Goods, Inc. is an authentic full-line sporting goods retailer offering a broad assortment of brand name sporting goods equipment, apparel, and footwear in a specialty store environment. As of August 1, 2009, the Company operated 409 Dick’s Sporting Goods stores in 40 states primarily throughout the eastern half of the U.S. The Company also owns Golf Galaxy, Inc., a multi-channel golf specialty retailer, with 91 stores in 31 states, ecommerce websites and catalog operations.

Dick’s Sporting Goods, Inc. news releases are available athttp://www.dickssportinggoods.com/ (click on the Investor Relations link at the top of the home page).

Contact:
Timothy E. Kullman, EVP — Finance, Administration, Chief Financial Officer and Treasurer or
Anne-Marie Megela, Director,
Investor Relations
724-273-3400
investors@dcsg.com

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED
(In thousands, except per share data)

	13 Weeks Ended
	August 1,		% of			August 2,		% of
	2009		Sales (1)			2008		Sales
						Adjusted
Net sales	$	1,126,767		100.00	%	$	1,086,294		100.00	%
Cost of goods sold, including occupancy and distribution costs		816,866		72.50			766,636		70.57
GROSS PROFIT		309,901		27.50			319,658		29.43
Selling, general and administrative expenses		238,745		21.19			237,667		21.88
Merger and integration costs		5,760		0.51			2,879		0.27
Pre-opening expenses		1,569		0.14			3,681		0.34
INCOME FROM OPERATIONS		63,827		5.66			75,431		6.94
Interest expense, net		90		0.01			4,390		0.40
INCOME BEFORE INCOME TAXES		63,737		5.66			71,041		6.54
Provision for income taxes		24,812		2.20			31,103		2.86
NET INCOME	$	38,925		3.45	%	$	39,938		3.68	%
EARNINGS PER COMMON SHARE:
Basic	$	0.35				$	0.36
Diluted	$	0.33				$	0.34
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		112,473					111,483
Diluted		117,230					116,806

(1) Column does not add due to rounding

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED
(In thousands, except per share data)

	26 Weeks Ended
	August 1,		% of			August 2,			% of
	2009		Sales (1)			2008			Sales (1)
						Adjusted
Net sales	$	2,086,429		100.00	%	$	1,998,405			100.00	%
Cost of goods sold, including occupancy and distribution costs		1,526,105		73.14			1,419,641			71.04
GROSS PROFIT		560,324		26.86			578,764			28.96
Selling, general and administrative expenses		464,868		22.28			457,631			22.90
Merger and integration costs		10,113		0.48			2,879			0.14
Pre-opening expenses		4,598		0.22			8,604			0.43
INCOME FROM OPERATIONS		80,745		3.87			109,650			5.49
Gain on sale of asset		—		—			(2,356	)		(0.12	)
Interest expense, net		1,681		0.08			7,999			0.40
INCOME BEFORE INCOME TAXES		79,064		3.79			104,007			5.20
Provision for income taxes		29,918		1.43			44,464			2.22
NET INCOME	$	49,146		2.36	%	$	59,543			2.98	%
EARNINGS PER COMMON SHARE:
Basic	$	0.44				$	0.53
Diluted	$	0.42				$	0.51
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		112,416					111,350
Diluted		116,725					117,051

(1) Column does not add due to rounding

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS — UNAUDITED
(Dollars in thousands)

	August 1,		August 2,		January 31,
	2009		2008		2009
			Adjusted		Adjusted
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	51,315	$	51,530	$	74,837
Accounts receivable, net		31,611		84,114		57,803
Income taxes receivable		2,008		—		5,638
Inventories, net		944,855		912,619		854,771
Prepaid expenses and other current assets		56,571		48,942		46,194
Deferred income taxes		5,757		18,255		10,621
Total current assets		1,092,117		1,115,460		1,049,864
Property and equipment, net		495,011		541,413		515,982
Construction in progress — leased facilities		103,472		16,476		52,054
Intangible assets, net		46,320		97,636		46,846
Goodwill		200,594		304,363		200,594
Other assets:
Deferred income taxes		77,222		24,038		67,709
Investments		5,596		2,792		2,629
Other		30,093		19,497		26,168
Total other assets		112,911		46,327		96,506
TOTAL ASSETS	$	2,050,425	$	2,121,675	$	1,961,846
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	455,501	$	416,550	$	299,113
Accrued expenses		215,827		227,157		208,286
Deferred revenue and other liabilities		79,113		82,275		102,866
Income taxes payable		910		9,487		2,252
Current portion of other long-term debt and capital leases		584		243		606
Total current liabilities		751,935		735,712		613,123
LONG-TERM LIABILITIES:
Senior convertible notes		—		168,335		172,179
Revolving credit borrowings		19,518		10,137		—
Other long-term debt and capital leases		8,475		8,555		8,758
Non-cash obligations for construction in progress — leased facilities		103,472		16,476		52,054
Deferred revenue and other liabilities		208,699		205,636		222,155
Total long-term liabilities		340,164		409,139		455,146
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock		874		854		871
Class B common stock		252		262		253
Additional paid-in capital		491,505		461,540		477,919
Retained earnings		462,178		512,445		413,032
Accumulated other comprehensive income		3,517		1,723		1,502
Total stockholders’ equity		958,326		976,824		893,577
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,050,425	$	2,121,675	$	1,961,846

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
(Dollars in thousands)

	26 Weeks Ended
	August 1,			August 2,
	2009			2008
				Adjusted
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	49,146		$	59,543
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		51,194			42,212
Amortization of discount on convertible notes		321			3,713
Deferred income taxes		(5,687	)		(15,927	)
Stock-based compensation		11,060			15,150
Excess tax benefit from stock-based compensation		(239	)		(1,004	)
Tax benefit from exercise of stock options		115			242
Other non-cash items		815			508
Gain on sale of asset		—			(2,356	)
Changes in assets and liabilities:
Accounts receivable		11,860			(2,049	)
Inventories		(90,084	)		(25,254	)
Prepaid expenses and other assets		(13,346	)		(12,295	)
Accounts payable		148,041			61,841
Accrued expenses		2,170			(7,062	)
Income taxes receivable/payable		2,409			(51,331	)
Deferred construction allowances		4,061			15,288
Deferred revenue and other liabilities		(28,163	)		(7,259	)
Net cash provided by operating activities		143,673			73,960
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(52,032	)		(108,794	)
Purchase of corporate aircraft		—			(25,107	)
Proceeds from sale of corporate aircraft		—			27,463
Proceeds from sale-leaseback transactions		21,910			16,384
Net cash used in investing activities		(30,122	)		(90,054	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings, net		19,518			10,137
Purchase of convertible notes		(172,500	)		—
Payments on other long-term debt and capital leases		(2,082	)		(136	)
Construction allowance receipts		7,022			10,424
Proceeds from sale of common stock under employee stock purchase plan		1,199			2,986
Proceeds from exercise of stock options		1,097			3,953
Excess tax benefit from stock-based compensation		239			1,004
Increase (decrease) in bank overdraft		8,347			(11,043	)
Net cash (used in) provided by financing activities		(137,160	)		17,325
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		87			(8	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(23,522	)		1,223
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		74,837			50,307
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	51,315		$	51,530
Supplemental disclosure of cash flow information:
Construction in progress — leased facilities	$	51,418		$	(7,268	)
Accrued property and equipment	$	(629	)	$	671
Cash paid for interest	$	647		$	4,084
Cash paid for income taxes	$	38,867		$	112,811

Store Count and Square Footage

The stores that opened during the second quarter of 2009 are as follows:

DICK’S

Store	Market
Santa Clarita, CA	Los Angeles
Pflugerville, TX	Austin
Fashion Island, CA	Los Angeles
Hot Springs, AR	Little Rock

The following represents a reconciliation of beginning and ending stores and square footage for the periods indicated:

	Fiscal 2009										Fiscal 2008
	Dick’s				Chick’s						Dick’s				Chick’s
	Sporting		Golf		Sporting						Sporting		Golf		Sporting
	Goods		Galaxy		Goods			Total			Goods		Galaxy		Goods		Total
Beginning stores		384		89		14			487			340		79		15		434
Q1 New		9		1		—			10			8		4		—		12
Q2 New		4		—		—			4			9		1		—		10
		397		90		14			501			357		84		15		456
Closed		—		—		(2	)		(2	)		—		—		—		—
Converted		12		1		(12	)		1			—		—		—		—
Ending stores		409		91		—			500			357		84		15		456

Square Footage: (in millions)
	Dick’s				Chick’s
	Sporting		Golf		Sporting
	Goods		Galaxy		Goods		Total
Q1 2008		19.5		1.3		0.8		21.6
Q2 2008		20.0		1.3		0.8		22.1
Q3 2008		21.4		1.4		0.7		23.5
Q4 2008		21.4		1.5		0.7		23.6
Q1 2009		22.0		1.5		0.6		24.1
Q2 2009		22.7		1.5		—		24.2

Non-GAAP Financial Measures

In addition to reporting the Company’s financial results in accordance with generally accepted accounting principles (“GAAP”), the Company provides information regarding net income and earnings per diluted share adjusted for merger and integration costs, pro-forma comparable store sales, earnings before interest, taxes and depreciation (“EBITDA”) as well as a reconciliation from the Company’s gross capital expenditures, net of tenant allowances. The following measures are considered non-GAAP and are not preferable to GAAP financial information; however, the Company believes this information provides additional measures of performance that the Company’s management, analysts and investors can use to compare core, operating results between reporting periods. These non-GAAP measures are provided below and on the Company’s website at http://www.dickssportinggoods.com/ (click on the Investor Relations link at the top of the home page). The Company’s website is not part of this press release.

Non-GAAP Net Income and Earnings Per Share Reconciliation
(in thousands, except per share data):

	Fiscal 2009
	13 Weeks Ended August 1, 2009
			Merger and
	As		Integration			Non-GAAP
	Reported		Costs			Total
Net sales	$	1,126,767	$	—		$	1,126,767
Cost of goods sold, including occupancy and distribution costs		816,866		—			816,866
GROSS PROFIT		309,901		—			309,901
Selling, general and administrative expenses		238,745		—			238,745
Merger and integration costs		5,760		(5,760	)		—
Pre-opening expenses		1,569		—			1,569
INCOME FROM OPERATIONS		63,827		5,760			69,587
Interest expense, net		90		—			90
INCOME BEFORE INCOME TAXES		63,737		5,760			69,497
Provision for income taxes		24,812		(2,304	)		27,116
NET INCOME	$	38,925	$	3,456		$	42,381
EARNINGS PER COMMON SHARE:
Basic	$	0.35				$	0.38
Diluted	$	0.33				$	0.36
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		112,473					112,473
Diluted		117,230					117,230

Refer to the Company’s press release dated March 10, 2009 announcing its results for the fourth quarter and year ended January 31, 2009 for a reconciliation of non-GAAP net income and earnings per share for fiscal 2008 and to the Company’s press release dated August 21, 2008 announcing its results for the second fiscal quarter ended August 2, 2008 for a reconciliation of non-GAAP net income and earnings per share for the second fiscal quarter of 2008.

	Fiscal 2009
	26 Weeks Ended August 1, 2009
			Merger and
	As		Integration			Non-GAAP
	Reported		Costs			Total
Net sales	$	2,086,429	$	—		$	2,086,429
Cost of goods sold, including occupancy and distribution costs		1,526,105		—			1,526,105
GROSS PROFIT		560,324		—			560,324
Selling, general and administrative expenses		464,868		—			464,868
Merger and integration costs		10,113		(10,113	)		—
Pre-opening expenses		4,598		—			4,598
INCOME FROM OPERATIONS		80,745		10,113			90,858
Interest expense, net		1,681		—			1,681
INCOME BEFORE INCOME TAXES		79,064		10,113			89,177
Provision for income taxes		29,918		(4,045	)		33,963
NET INCOME	$	49,146	$	6,068		$	55,214
EARNINGS PER COMMON SHARE:
Basic	$	0.44				$	0.49
Diluted	$	0.42				$	0.47
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		112,416					112,416
Diluted		116,725					116,725

Refer to the Company’s press release dated March 10, 2009 announcing its results for the fourth quarter and year ended January 31, 2009 for a reconciliation of non-GAAP net income and earnings per share for fiscal 2008 and to the Company’s press release dated August 21, 2008 announcing its results for the second fiscal quarter ended August 2, 2008 for a reconciliation of non-GAAP net income and earnings per share for the 26 weeks ended August 2, 2008.

Pro-forma Comparable Store Sales

The following pro-forma comparable store sales present information as if Golf Galaxy had been acquired at the beginning of the periods presented. The sales have been adjusted to conform to the Company’s reporting calendar and method of reporting comparable sales. Golf Galaxy is included in the quarterly comparable store base beginning in Q2 2008, which is the first full quarter following the anniversary of the date of acquisition.

	Dick’s
	Sporting			Golf
	Goods			Galaxy			Consolidated
26 weeks ended August 2, 2008		-3.7	%		-6.2	%		-4.0	%

EBITDA

EBITDA should not be considered as an alternative to net income or any other generally accepted accounting principles measure of performance or liquidity. EBITDA, as the Company has calculated it, may not be comparable to similarly titled measures reported by other companies. EBITDA is a key metric used by the Company that provides a measurement of profitability that eliminates the effect of changes resulting from financing decisions, tax regulations, and capital investments.

	13 Weeks Ended
	August 1,			August 2,
EBITDA	2009			2008
	(dollars in thousands)
Net income	$	38,925		$	39,938
Provision for income taxes		24,812			31,103
Interest expense, net		90			4,390
Depreciation and amortization		26,098			21,812
Less: Depreciation and amortization (merger integration)		(2,290	)		(100	)
Add: Merger and integration costs		5,760			2,879
EBITDA	$	93,395		$	100,022
% decrease in EBITDA		-7	%
	26 Weeks Ended
	August 1,			August 2,
EBITDA	2009			2008
	(dollars in thousands)
Net income	$	49,146		$	59,543
Provision for income taxes		29,918			44,464
Interest expense, net		1,681			7,999
Depreciation and amortization		51,194			42,212
Less: Depreciation and amortization (merger integration)		(2,478	)		(100	)
Add: Merger and integration costs		10,113			2,879
Less: Gain on sale of asset		—			(2,356	)
EBITDA	$	139,574		$	154,641
% decrease in EBITDA		-10	%
Reconciliation of Gross Capital Expenditures to Capital Expenditures
The following table represents a reconciliation of the Company’s gross capital expenditures to its capital expenditures, net of tenant allowances.
	26 Weeks Ended
	August 1,			August 2,
	2009			2008
	(dollars in thousands)
Gross capital expenditures	$	(52,032	)	$	(108,794	)
Proceeds from sale-leaseback transactions		21,910			16,384
Changes in deferred construction allowances		4,061			15,288
Construction allowance receipts		7,022			10,424
Net capital expenditures	$	(19,039	)	$	(66,698	)